What Is the Effective Annual Interest Rate on a 9

question 20

Multiple Choice

What is the effective annual interest rate on a 9 percent APR automobile loan that has monthly payments?

• A)9.00 percent
• B)9.38 percent
• C)9.81 percent
• D)10.94 percent Effective rate = (1 + (.09 + 12))¹²-1
• = (1.0075)¹²-1
• = 1)0938-1

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Definitions:

Sampling Method

Techniques or strategies used to select a representative subset of the population for analysis.

Suburban Street

A type of street found in a suburban area, typically characterized by residential homes, lower traffic volumes, and often designed to foster a sense of community.

Population Frame

A list or database containing all elements or individuals in the population to be studied, which serves as a reference for sample selection.

Sampling Plan

A Sampling Plan is a detailed outline that specifies how samples will be taken from a population to represent the whole in statistical analysis or quality assurance processes.